Retail News CRM

Category: Food

Retail News Asia is committed to providing both local and global retailers with the latest Food and Food & Beverage news throughout the Asian market. This on a daily base.

  • Aldi comes to the party as grocery code tabled

    Aldi comes to the party as grocery code tabled

    Australian Small Business Minister Bruce Billson has won support for the grocery industry code of conduct from discounter Aldi but is disappointed that wholesaler Metcash has agreed to adopt elements of the code rather than sign up in full.

    The code, which was tabled in Parliament on Monday and takes effect on Tuesday, prohibits certain types of unfair conduct by retailers and wholesalers in their dealings with suppliers and provides a clearer framework for retailer and supplier negotiations.

    Aldi, which was originally reluctant to sign the code until it was confident it would not increase costs and push up prices for consumers, said on Monday it would sign up to the code as a party.

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  • Lower tier boost for Sun Art

    Lower tier boost for Sun Art

    Chinese hypermarket operator Sun Art Retail Group says a move into lower-tier cities is bearing dividends.

    The group, a joint venture between French retailer Groupe Auchan SA and Taiwan’s Ruentex Group, says its profit rose 4.8 per cent last calendar year.

    Sun Art, already China’s largest hypermarket operator despite intense competition from Tesco, Carrefour and Walmart, opened 49 new hypermarkets during 2014, expanding its chain to 372.

    On Sunday the retailer announced its profit for 2014 was 2.91 billion yuan ($464.15 million) compared with 2.78 billion yuan ($442.64 million) in 2013.

    Sales rose from 86.2 billion yuan to 91.9 billion and gross profit margin by 1.3 percentage points to 22.9 per cent.

    Same store sales slipped 1.6 per cent as consumers enjoyed wider choice in the market and consumer spending was largely subdued.

    In the year ahead, Sun Art says it will continue to open new hypermarkets in lower tier cities and increase sales in its eCommerce business.

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  • 7-Eleven Malaysia thrives on store growth

    7-Eleven Malaysia thrives on store growth

    7-Eleven Malaysia says its quarterly profit soared 70 per cent on the back of an aggressive store expansion program.

    The listed company operated 1774 stores at the end of the December quarter – 200 more than at the end of 2013. It posted a profit of RM17.9 million (US$4.94 million) for the quarter compared with RM10.5 million ($2.9 million) a year earlier. Revenue rose 14 per cent to RM481.1 million ($132.7 million).

    Full year net profit was up 44 per cent to RM63.7 million ($17.6 million) fuelled by growing sales and gross profit margin and store network expansion.

    Sales rose 12 per cent year on year to RM1.9 billion ($524.2 million).

    7-Eleven Malaysia said in a profit statement it is positive about the year ahead, despite a softening in consumer sentiment (in part driven by wariness of the introduction of GST on April 1).

    “The continuing roll-out of new stores to increase the existing network as well as the on-going store refurbishment programme will have a positive impact. In addition to this, increased promotional and merchandising activities along with the expansion of in-store services and a further expansion of the group’s food and beverage offerings at store level will help drive revenue and profit growth,” the company said.

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  • Alfamart Philippines targets 3000 stores

    Alfamart Philippines targets 3000 stores

    Indonesian c-store format Alfamart is making steady progress in the Philippines after local retail giant SM Group entered a joint venture.

    Alfamart operates some 8500 convenience stores in Indonesia and now the brand is expanding into Philippines, where the c-store sector is still in its development stage.

    SM Supermarkets president Joey C. Mendoza told the Philippine Star newspaper that at the end of 2014, his company had opened 22 Alfamart branches after the two companies partnered in July. The first store in Trece Martires in Cavite, near Manila.

    Another eight have opened already this year.

    Alfamart Philippines stores stock basic groceries, foods, medicines and convenience foods 24 hours a day.

    SM expects strong growth during the next five years, believing critical mass for the chain is between 1000 and 3000 stores.

    Alfamart Indonesia is providing SM Group with experience and advice on the format’s expansion, stocking and rollout.

    Each store ranges from 150 sqm to 300 sqm in size and costs a maximum of P30 million (US$681,000) to open.

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  • Food and mobile phones boost mall sales

    Food and mobile phones boost mall sales

    Mobile phone sales, supermarkets and a turnaround in the performance of discount department stores all helped to underpin the half-year results for the Australian retail landlords Federation Centre and Charter Hall Retail REIT.

    Both landlords own shopping centres dominated by food retailers with an array of speciality stores and some DDS, throughout the country. They said new acquisitions and mall redevelopments would continue in the coming months.

    The two groups reaffirmed the full-year results were positive as lower petrol prices and the low interest rates boosted consumer spending.

  • Starbucks stores roll out Lunar New Year merchandise across Asia

    Starbucks stores roll out Lunar New Year merchandise across Asia

    Starbucks stores has unveiled new card designs, mugs, tumblers and other merchandise in Asian markets in time for the celebration of the Lunar New Year.

    As one of the world’s grandest and most significant cultural celebrations, the Lunar New Year, also known as the Spring Festival, is a time to sweep out the old and bring in the new with family gatherings, celebrations and the exchanging of gifts.

    Starbucks senior designer Victor Melendez created the design for the 2015 Starbucks Lunar New Year Card, available in dozens of countries around the world. His design, crafted using a linoleum block printing technique, features the seasonal colors of red and gold.

    Complete set includes 12 Hong Kong USD20 gift vouches and a complimentary tall handcrafted beverage voucher and 16 delicate packets in red and gold.

    Starbucks Coffee Wafer Rolls are also made available in China, Singapore, Taiwan. Meanwhile, a delicate treat of aromatic peach blossom and Earl Grey tea with freshly steamed milk, topped off with whipped cream and peach blossom sugar sprinkle.

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  • CP All in USD433m drive to expand store operations

    CP All in USD433m drive to expand store operations

    Thailand’s retail company CP All Plc has earmarked THB14 billion (USD432.6 million) to expand its convenience and cash-and-carry store operations this year on the back of economic recovery and high consumer spending power.

    Of the total budget, THB9 billion will go to its own 7-Eleven convenience store expansion and the remaining THB5 billion to its subsidiary Siam Makro Plc, which operates Makro cash-and-carry stores.

    CP All plans to open 600 new convenience stores and improve its existing outlets, while Siam Makro will open 10 new Makro branches.

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  • KFC Thailand to boost network

    KFC Thailand to boost network

    KFC Thailand says it plans to open 55 new outlets in 2015 and refurbish another 20 as it aims to boost its share of the nation’s fast food market.

    According to a report published by the Bangkok Post newspaper, KFC will boost its capital spending by 20 per cent this year, largely with funds from the brand’s parent Yum! Restaurants International, the balance from local partner Central Group.

    By the end of the year it will have a chain of 586. Fifteen of the new branches will be configured as drive-thrus.

    According to Waewkanee Assoratgoon, KFC country GM with Yum! Thailand, further capital will be invested in a new IT system aimed at speeding up the ordering process for both home-delivery and counter transactions. The company is also developing apps which would allow customers to order from smartphones or computers.

    Waewkanee told the newspaper it expects sales to increase by 10 per cent this year, one per cent more than in 2014.

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  • Esquires takes back China

    Esquires takes back China

    Cooks Global Foods’ has successfully completed the purchase of the Esquires Coffee Houses master franchise in China.

    Cooks first signalled the purchase of Beijing Esquires Management Co (Esquires China) in September under an agreement where the Chinese master franchisee sold back the Chinese rights in return for a stake in Cooks.

    Esquires China was formerly owned by three shareholders, including Beijing Yunnan Building Hotel Co, wholly owned by Yunnan Metropolitan Investment Company (YMCI), which is in turn owned by the Yunnan Provincial Government. Yunnan is a province located in the southwest of China with a population of 46 million people.

    YMCI is now the second largest shareholder in Cooks, with a 15.8 per cent stake.

    Cooks Global Foods chairman, Keith Jackson, says the franchise purchase delivers a strong cornerstone shareholder to the listed company.

    “YMCI is a company with a capital value in excess of US$800 million and part of its assets are listed on the Shanghai Stock Exchange,” Jackson said.

    “The vendors remain very keen to be part of the growth of the Esquires brand and the coffee industry itself in China and internationally through the shareholding in the Esquires global business, that they now have through their Cooks shareholding.

    “We were able to come to an agreement to buy back the master franchise business for China and the vendors took a shareholding in Cooks. Effectively that provides Cooks with a more direct interest in China, the world’s fastest growing coffee market where branded coffee is in its infancy.

    “The big brands are in there and that’s great for us because it spreads the coffee gospel. Our aim is to accelerate the growth of the Esquires business in China through expansion in conjunction with both existing and new partners building on our core principles of Organic and Fairtrade coffee from New Zealand.”

    Jackson says there is a strong management team in China under Ellen Zhang, a former Esquires franchisee at the Auckland Quay Street café, part of the Countdown supermarket complex.

    “Ellen manages a very good team, many of whom have experience with international brands such as Starbucks. In fact, NZTE advised us that we are now New Zealand’s third largest employer in China, behind Fonterra and our government,” Jackson said.

    The aim is to have more than 200 stores operating in the Peoples’ Republic of China by 2020.

    Esquires Coffee Houses operate in Ireland, England, the Middle East, Canada, and China.

  • Jollibee to open 330 stores

    Jollibee to open 330 stores

    Philippines-based fast food operator Jollibee Foods has reported a 14.3 per cent increase in income and announced a massive 330-store rollout for 2015.

    Jollibee is the country’s largest fast-food chain saw global sales increase 12.9 per cent to P90.7 billion (US$2.05 billion) from P80.2 billion ($1.81 billion) year on year to December 31.

    Its profit was P5.3 billion ($120 million), according to a lodgement with the Philippine Stock Exchange.

    Jollibee says it will open 330 stores this year – 220 of which will be in the Philippines. That’s a significant increase on last year’s 234 stores last year, of which 169 were in the Philippines and the remaining 65 abroad.

    The expansion will be funded by a 65 per cent boost in capital expenditure this year. two thirds to be spent in the Philippines, the blance in China, the Middle East and Southeast Asia.

    Jollibee operates 2301 restaurants inside the Philippines: 858 bearing the Jollibee banner, 456 Mang Inasal, 410 Chowkings, 211 Greenwich, 323 Red Ribbon, and 43 Burger Kings. It has a further 612 stores overseas, including 310 Yonghe Kings, 50 Sang Pin Wan stores and 42 Hong Zhuang Yuan stores in China; 125 Jollibees outside the Philippines, including 62 in Vietnam and 32 in the US; and a chain of Chowkings in the US and Middle East.

    It also has a 50 per cent stake in Vietnamese chains Highlands Coffee, which has 78 stores in Vietnam and the Philippines, and Pho 24 which has 53 restaurants in Vietnam, Indonesia, the Philippines, Cambodia, Macau and Korea; and in 12 Sabu, which has 19 stores in China.

    Jollibee says system-wide retail sales grew a faster 13.3 per cent in 2014, including company-owned and franchised stores.

    Jollibee’s CFO Ysmael V. Baysa said profitability would have been higher if not for increased raw material costs last year.

    “The raw material cost increases in 2014, averaging 5.4 per cent, brought pressure on our profit margins. We made important price adjustments and improved our store and manufacturing expenses during the year. We are now very close to fully covering these cost increases and look forward to the full recovery and improvement in gross profit margins in 2015 through lower cost of energy and more stable raw material prices,” he said.

    “We will also offer even better products to our consumers to help ensure our products continue to provide them great value.”

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  • Shake Shack Japan bound

    Shake Shack Japan bound

    US burger chain Shake Shack is headed for Asia.

    The company says it has signed a licensing agreement with Japanese company Sazaby League, local operator of Starbucks. The two companies plan to open 10 Shake Shacks in Japan by 2020, with the first, in Tokyo, scheduled to open in 2016.

    Shake Shack, headquartered in New York, raised US$105 million in a recent IPO and is using the funds for expansion at home and abroad.

    At the time of the IPO it ran 63 restaurants in the US, 15 of them in New York. It also has stores in London, Istanbul and Moscow and plans 10 new restaurants this year as part of a longer term plan to expand to 450 outlets.

    The chain is known for burgers, milk shakes and crinkle-cut fries.

    Its Japanese restaurants will have a menu which retains core items from the brand, but is tailored to the local palate.

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  • New Coffee Bean Asia chief

    New Coffee Bean Asia chief

    The Coffee Bean & Tea Leaf  has named Andrew Nathan as senior VP for Asia Pacific.

    In what is a newly created role, Nathan will be the primary driver of the company’s growth opportunities in Asia, including responsibility for company operations in Singapore and Malaysia. He takes over duties of Victor Sassoon, co-owner and CEO of Coffee Bean & Tea Leaf Asia Pacific, who remains on the company’s board.

    Based in Singapore, Nathan will report to John Dawson, president and CEO.

    Nathan has nearly 20 years of experience in the specialty coffee business and with leading and growing brands in Asia. He began his international career working with the US Peace Corps and the American Red Cross and has held regional franchise and corporate market leadership positions for such global brands as Starbucks Coffee and Domino’s Pizza.

    The Coffee Bean-Andrew Nathan

     

    During his tenure as owner and CEO of Coffee Bean & Tea Leaf Asia Pacific, Victor Sassoon opened more than 100 stores in Singapore and Malaysia and oversaw franchise expansion to 550 stores in over 25 countries spanning Asia and the Middle East.

    In September 2013, Advent International, CDIB Capital and Mirae Asset Private Equity joined forces to acquire an equity stake in the business. Together with the Sassoon family, who remain substantial shareholders, they are working to accelerate the brand’s growth and international expansion.

    “We’ve worked very hard over nearly 20 years to grow and nurture this great brand,” said Victor Sassoon. “It’s been highly rewarding and I value the relationships I’ve developed with our franchisees, developers and team members during my tenure as CEO of Asia Pacific. I look forward to my continued involvement as a board member and have full confidence in Andrew as he takes on the leadership role in Asia Pacific.”

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  • McDonald’s Philippines marries value meals with mobile access

    McDonald’s Philippines marries value meals with mobile access

    McDonald’s Philippines has partnered with mobile services provider Smart Communications in its latest marketing promo to encourage customers to purchase value meals.

    Every order of any McDonald’s Value Meal plus fries or sundae comes with a free Smart messaging coupon that gives customers a whole day of unlimited text and unlimited access to mobile chat apps.

    The Philippines has about 102.8 million mobile subscriptions in 2013 or over 100 percent of the population, according to data from the International Telecommunications Union (ITU). Most people, however, are on prepaid subscription.

    The Smart messaging coupons to be given away with the meals gives a prepaid subscriber all-day access to SMS and chat apps such as Facebook Messenger, Line, Viber, WeChat and Whatapp – without need for WiFi connection.

    “Our subscribers can expect more perks and freebies as we move toward further enriching their mobile lifestyle,” said Joel Lumanlan, Smart Prepaid head.

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  • New concept for Pizza Hut Hong Kong

    New concept for Pizza Hut Hong Kong

    Yum! Brands has unveiled a new concept store in Hong Kong – Pizza Hut Super Delco.

    The delivery-based, eat-in store model features smaller scale fast casual or a convenient eat-in area with seating for 30-50 customers. The company believes the new store model is ideal for locations with high traffic and in dense residential areas.

    In place of the stark, plastic look of the last generation of fast food stores, Pizza Hut Hong Kong Super Delco features cast iron ‘star-burst’ chandeliers, mosaic, light-wood tables and rustic grasses arranged amidst artisan olive oil bottles. In the words of Yum!, it looks more like a character-filled coffee bar than a pizza restaurant.

    Designed to create “a relaxing and intimate ambiance”, the new Super Delco offers “a flavorful oasis from the hectic lifestyle of millennials living in Hong Kong”, says Yum!.

    Pizza Hut Hong Kong is aiming to be the city’s ‘most loved’ pizza brand and the chain already boasts more than 100 outlets. It is one of the few Super Delco located anywhere in the world.

    Richard Leong, CEO of Pizza Hut Hong Kong, is excited about the opportunities the Delco Model store will bring to the region.

    “Pizza Hut Super Delco is a new business channel that will continue to be an engine of growth for us as the Hong Kong restaurant space becomes more competitive and the neighborhood dining scene is evolving. We also need to cater to a younger millennial generation seeking for a convenient meal replacement.”

    The Super Delco design was intentional as research showed that millennials in Hong Kong are looking for a relaxing place to enjoy a cup of coffee or tea and light meals (e.g. Panini or cake) during weekends in their neighborhood.

    It’s not just the design of the new Super Delco that’s infused with flavour: the menu brings new dishes, offering solutions for small groups or individuals with a focus on pasta, rice and mini-pizza.

    Dishes already proving popular among local customers include the Chinese New Year Pizza – Cheesy 7 Fiesta in the shape of a flower, and in Taiwan, the Pineapple Bun Stuffed Crust Pizza.

    “The overwhelming amount of encouraging responses to the new store opening has given the Hong Kong Pizza Hut team confidence in this exciting new venture,” Yum! said in a statement.

    More Super Delcos will now be opened in Hong Kong during the year.

  • McDonald’s shareholder group calls for changes to board of directors

    McDonald’s shareholder group calls for changes to board of directors

    A McDonald’s Corp. shareholder group called for changes to the burger giant’s long-tenured board of directors, including Chairman Andrew McKenna, because of the company’s ongoing sales woes.

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